Consider the following graph of the demand curve and isoprofit curves for Cheerios:
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If demand became more inelastic, which of the following would have to happen?

Question

Consider the following graph of the demand curve and isoprofit curves for Cheerios:  If demand became more inelastic, which of the following would have to happen?

Accepted Answer

The slope of the profit-maximizing isoprofit curve at the profit-maximizing outcome would increase.

Answer

The profit-maximizing price of Cheerios would increase.

Answer

The profit-maximizing quantity of Cheerios would increase.

Answer

Profit would increase.

Crowdly

Consider the following graph of the demand curve and isoprofit curves for Cheeri...

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